House Passes Bill to Eliminate the FERS Supplemental “Bridge” Payment

Just before 7am on Thursday, May 22, the House of Representatives passed a bill that would give $4.5 trillion in tax cuts to the ultra-wealthy on the backs of the working class. Although this bill is officially named the One Big Beautiful Bill Act or H.R. 1, there is nothing beautiful about it. This bill pays for these massive tax breaks through cuts to vital government programs, including the Federal Employees Retirement System (FERS), which covers postal and federal employees.

H.R. 1 would eliminate the FERS annuity supplement for certain employees, which would begin to apply on January 1, 2028. The FERS annuity supplement is an earned benefit that makes it financially possible for postal workers to retire before age 62, which is when Social Security benefits begin. Essentially, this supplement is a monthly payment that helps bridge the gap between an employee’s retirement and Social Security eligibility.

For example, a postal employee age 57 who has met their years of service requirement and is eligible can retire knowing they will receive a monthly payment until their Social Security benefits begin at age 62. If the FERS annuity supplement is eliminated, many postal workers aged 57 to 62 who are eligible to retire will have a choice — take less in retirement without this supplement or continue working years longer until they can collect Social Security.

Thanks to the pressure that postal workers, labor unions, and other allies placed on members of Congress through phone calls, letters, and even trips to Washington, DC, we were able to remove two other harmful provisions in the original version of this tax-cut bill. One provision would’ve increased the FERS employee contribution rate to 4.4% for all active employees, and the other would’ve replaced the high-3 FERS annuity calculation with a high-5 calculation, which would result in a reduction in annuity payments.

The APWU stands firm against the elimination of the FERS annuity supplement as we believe retirement is an earned benefit that should not be jeopardized. Changing the terms of retirement is unfair to postal and federal workers who worked their jobs with the promise of an equitable retirement. We were successful in removing two other cuts to FERS benefits from this bill, so let’s keep up the fight!

Now that the One Big Beautiful Bill Act (H.R. 1) has passed the House, our fight moves to the Senate. Call our Legislative Hotline at 844-402-1001 and urge both of your senators to protect the FERS annuity supplement!